Delek Assessing Ithaca Merger



Delek Assessing Ithaca Merger
Delek Group (TASE: DLEKG) is holding discussions with third parties to assess the possibility of a merger of Ithaca Energy with 'international companies in the energy field'.

Delek Group (TASE: DLEKG) announced Monday that it is holding discussions with third parties to assess the possibility of a merger of Ithaca Energy with “international companies in the energy field”.

Ithaca would hold at least 50 percent in the company, according to Delek Group, which outlined an intention to turn the merged business into a public company traded in London.

“Several international investment banks are accompanying the discussions,” Delek Group stated in its second quarter financial statement, which was released Monday.

“The merger plan under consideration in the discussions is also expected to include a cash payment component that will be transferred to Delek Group, as part of the merger process,” Delek Group added in the statement.

Ithaca Energy is a wholly owned subsidiary of Delek Group, which describes itself as Israel’s leading independent exploration and production company. Headquartered in Aberdeen, Scotland, Ithaca Energy is a leading independent oil and gas company with production, development and exploration operations in the UK North Sea, according to its website.

Delek Group recorded revenues of $577 million (NIS 1.94 billion) in the second quarter, which was similar to the corresponding quarter last year. The company made a gross profit of $242 million (NIS 816) in the quarter and a net loss of $97 million (NIS 326 million), “mainly arising from one-time accounting provisions”.

Ithaca Energy’s revenues in the quarter were $289 million (NIS 971 million), which was a significant increase compared to its revenues of $104 million (NIS 350 million) in the same quarter last year. The company’s net profit came to $30 million (NIS 102 million), compared to a net profit of $8 million (NIS 27 million) in the second quarter of 2019.

In May last year, Ithaca Energy revealed that it would acquire Chevron North Sea Limited for $2 billion. The transaction was completed in November 2019.

To contact the author, email andreas.exarheas@rigzone.com



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